Aircraft Value News [December 7, 2020] -

Issue: December 7, 2020

B777X Values Face Challenges in New Market Structure

The residual values of the B777-9 have always been predicated on the basis of the type being a replacement for the B777-300ER as well as meeting traffic growth, thereby generating hundreds of orders but with a change in the market structure this may see a shift away from the type…

By: Aircraft Value News

December 7, 2020

AVN

No Recovery Yet for Widebody Rentals

The inability of airlines to restore reliable in international routes continues to hamper the recovery of widebody rentals. Thus far the domestic market has enjoyed a measure of recovery but not so international services, particularly long haul. The demand for widebodies remains weak with many still being used as “preighters”.…

By: Aircraft Value News

December 7, 2020

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Values Stutter as Storage Levels Remain High

The values of the -300 have suffered a significant decline due to the Covid Event but they were already under pressure before then as a result of the arrival of the A330-900 and greater availability on the used market. The market for the type remains difficult as there are over…

By: Aircraft Value News

December 7, 2020

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Aircraft Asset Assessment - A330-300

Market Presence. The A330-300 at last served to throw off the adverse perceptions that sometimes plague Airbus widebody values. In terms of residual values, for the short to medium term the A330-300 initially proved to be among the top smaller widebody performers though these have fallen in recent years as…

By: Aircraft Value News

December 7, 2020

AVN

Loan to Value Ratios Fall As Lenders Seek to Minimize Risk

The demise of the aircraft value cycle was much exaggerated prior to the Covid Event and the return of volatility has inevitably caused the flight of many investors away from aircraft financing with those remaining, demanding risk averse loan to value (LTV) ratios. The Covid Event has impacted aircraft values…

By: Aircraft Value News

December 7, 2020

AVN

12 Year Old B777-300ER Scrapped

Maintenance Reserves Accelerate Retirements But EOLC May Delay Scrapping The Covid Event will accelerate the retirement of midlife aircraft, particularly widebodies, not only due to non performing leases and market weakness, but also because of accrued maintenance reserves and End of Lease Compensation. A B777-300ER owned by lessor China Aircraft…

By: Aircraft Value News

December 7, 2020

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B787-8 Values Remain Fragile

The market for the B787-8 was weak before the Covid Event and values have inevitably suffered to a greater degree than other more modern widebodies. In April, values of the B787-8 fell by approximately 30 percent compared to less than 25 percent for the B787-9. The B787-8 had already lost…

By: Aircraft Value News

December 7, 2020

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B737-800 Values & Lease Rentals Start to See Effect of Return of B737-8

There is little doubt that the values and lease rentals of the B737-800 have been buoyed by the grounding of the B737-8 but with the return to service at a time of market weakness, any premium applied the B737NG is likely to dissipate. The values and lease rentals of both…

By: Aircraft Value News

December 7, 2020

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Lease Encumbered Market Values Enable Lessors to Minimize Impairment

With the fall in the value of aircraft and the reduction in lease rentals, lessors - and investors in lessors - are increasingly seeking ways of minimizing impairment and seeking an appropriate valuation of the company. The use of lease encumbered market value seeks to value the attached lease. The…

By: Aircraft Value News

December 7, 2020

AVN